Cliffs Natural Resources (CLF) Posts Q3 adj.-EPS of 21c
Cliffs Natural Resources (NYSE: CLF) reported Q3 EPS of $0.21, $0.26 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $1.3 billion versus the consensus estimate of $1.28 billion.
Lourenco Goncalves, Cliffs' Chairman, President and Chief Executive Officer, said, "The core of our business, United States Iron Ore, demonstrated remarkable strength in the third quarter as it continues to generate more EBITDA than the Company on a consolidated basis. Additionally, our USIO and APIO businesses generated a combined $295 million in Adjusted EBITDA." Mr. Goncalves added, "Despite continued cost cutting progress at Bloom Lake, Phase I is not feasible. By the end of this year, we will have a solution for Bloom Lake."
Cliffs' third-quarter 2014 SG&A expenses were $63 million and included $24 million in proxy contest, change in control and severance-related costs during the quarter. Excluding these items and a $10 million litigation judgment that occurred in the third quarter of 2013, third-quarter 2014 SG&A expenses decreased $14 million, or 26 percent, when compared to the year-ago quarter.
During the third quarter of 2014, miscellaneous - net expense increased to $54 million and included $64 million in Wabush-related expenses, primarily associated with the cancellation of the Mine's rail contract and the costs incurred to idle the facilities. Miscellaneous - net expense also included a $15 million penalty incurred from a minimum tonnage rail shipment contract not being met as a result of the suspension of the Phase II expansion of Bloom Lake mine. This was partially offset by a favorable impact of $26 million related to foreign currency exchange re-measurements.
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